State Infrastructure Banks: A Virginia Perspective

This report provides a brief overview of state infrastructure banks (SIBs) from the perspective of the Commonwealth of Virginia. It includes three simplified illustrations of how a SIB might use its initial capitalization and/or ongoing revenue. The report also discusses the federal TIFIA program, which is similar in some respects to state-level programs like SIBs. The report then discusses Virginia’s existing SIB, which was authorized in 1996 with the signing of a Cooperative Agreement between the FHWA and VDOT. Virginia’s SIB was established in 1997 and has supported two projects, the Pocahontas Parkway in Richmond and the I-95/395 HOT lanes in northern Virginia. The current Virginia SIB has relatively limited scope and resources. A revised or newly chartered Virginia SIB might be authorized to use some of the tools and mechanisms used in other states. The next section examines case studies from three states to illustrate how other states have used SIBs. A subsequent section discusses the risks associated with SIBs, and a final section discusses how a new or restructured Virginia SIB could supplement Virginia’s transportation financial outlook.